National Stock Exchange of India Ltd (NSE), India’s leading stock exchange has started listing Commercial papers (CPs) which will help issuers make appropriate disclosures at the time of listing and on a continuous basis and will lead to deepening of the debt markets.
Listing of CPs is expected to lead to efficient transmission of information regarding corporate borrowings and liquidity positions to market participants. It will also contribute effectively towards the development of the commercial paper market and is expected to have a positive effect on the Debt Capital market in India.
Aditya Birla Finance Limited (ABFL), the lending subsidiary of Aditya Birla Capital Limited is the first company to list its Commercial Paper on National Stock Exchange (NSE) with a value date of 28th November 2019 and maturity date on February 7, 2020. ABFL is a well-diversified non-banking finance company (NBFC) with a long-term credit rating of AAA (Stable) from both ICRA as well as India Ratings.
Marking the occasion, Ms. Ishita Vora, Head Listing, NSE said, “NSE is committed to the development of the Commercial Paper market in India and has been at the forefront to enable the smoother transition of CPs as listed securities. We are hopeful that this will enhance transparency and enable efficient information dissemination to investors leading to deepening of investments in money market instruments.”
Mr. Rakesh Singh, MD & CEO Aditya Birla Finance Limited said, “SEBI’s announcement to list Commercial Papers is a welcome move for the industry as it will encourage further transparency and better corporate governance practices. We are glad to announce that ABFL is taking a thought leadership position in the market by being the first company to list its Commercial Paper in order to reinstate faith in the system. Trust in the system can only be restored with complete transparency. Through this pioneering move, we aim to set standards for Commercial Paper issuance which will bring in liquidity, transparency and thereby create trust in the minds of investors. We always strive to set a benchmark in whatever we do.”